Axis Bank Q2 results revealed a 26% year-on-year decline in standalone net profit to ₹5,089.64 crore for the quarter ended September 2025, compared to ₹6,917.57 crore in the same period last year. The fall was mainly due to higher provisions and slower growth in operating income.
Key Takeaways of Axis Bank Q2 Results
- Axis Bank Q2 results show a 26% YoY profit decline to ₹5,090 crore.
- Operating profit fell 3% to ₹10,413 crore due to higher provisions.
- Axis Bank profit decline linked to rising contingencies of ₹3,547 crore.
- NII up 2% YoY at ₹13,745 crore, indicating modest credit growth.
- Gross NPA improved to 1.46%, while Net NPA rose slightly to 0.44%.
- Axis Bank financial report highlights strong asset quality and stable margins.
Financial Performance Overview
According to the Axis Bank financial report, net interest income (NII) increased slightly, up 1% quarter-on-quarter and 2% year-on-year, to ₹13,745 crore. However, operating profit dipped 3% to ₹10,413 crore, while core operating profit stood at ₹9,915 crore.
Operating Costs and Provisions
The bank’s operating costs grew by 5% year-on-year, driven by investments in technology and expansion. Meanwhile, provisions and contingencies rose sharply to ₹3,547 crore, up from ₹2,204 crore in the same quarter of FY25.
Asset Quality Metrics
Asset quality remained stable. Gross NPA stood at 1.46%, down 11 basis points sequentially but slightly higher than a year ago. Net NPA rose to 0.44% from 0.34% in the same quarter last year.
Outlook and Strategic Position
Despite the fall in profit, Axis Bank quarterly earnings reflected steady core growth and improved asset quality. The bank continues to maintain a healthy balance sheet with consistent credit demand and a stable CASA ratio.
The Axis Bank September quarter performance shows resilience amid rising provisions, suggesting the lender’s strategy remains focused on sustainable credit growth and controlled asset risk.
Conclusion
Overall, the Axis Bank Q2 results indicate a temporary dip in profit due to provisioning pressure but stable fundamentals and improving loan book quality.
